Summary of Investments (Tables)

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

A reconciliation of the amortized cost (cost for equity securities) to fair value of investments in available-for-sale fixed maturity and equity securities, presented on a consolidated basis, as of June 30, 2020 and December 31, 2019, is provided below:


June 30, 2020
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value		Allowance for Credit Losses		Carrying Value
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	50,353	$	869	$	—	$	51,222	$	—	$	51,222
U.S. government agency	63,503		4,005		—		67,508		—		67,508
States, municipalities and political subdivisions
General obligations:
Midwest	81,486		4,068		—		85,554		—		85,554
Northeast	30,012		1,487		—		31,499		—		31,499
South	105,479		5,126		—		110,605		—		110,605
West	105,196		6,647		—		111,843		—		111,843
Special revenue:
Midwest	127,824		8,508		—		136,332		—		136,332
Northeast	58,414		4,218		—		62,632		—		62,632
South	221,309		15,894		—		237,203		—		237,203
West	134,462		8,532		—		142,994		—		142,994
Foreign bonds	26,428		1,739		106		28,061		—		28,061
Public utilities	77,529		6,713		—		84,242		—		84,242
Corporate bonds
Energy	25,928		2,353		11		28,270		—		28,270
Industrials	39,625		3,115		—		42,740		—		42,740
Consumer goods and services	47,134		3,726		52		50,808		—		50,808
Health care	7,327		869		—		8,196		—		8,196
Technology, media and telecommunications	35,253		4,010		—		39,263		—		39,263
Financial services	96,415		6,680		317		102,778		10		102,768
Mortgage-backed securities	15,737		335		2		16,070		—		16,070
Collateralized mortgage obligations
Government national mortgage association	74,741		5,707		1		80,447		—		80,447
Federal home loan mortgage corporation	95,076		2,862		160		97,778		—		97,778
Federal national mortgage association	76,272		3,015		83		79,204		—		79,204
Asset-backed securities	314		613		—		927		—		927

Total Available-for-Sale Fixed Maturities	$	1,595,817	$	101,091	$	732	$	1,696,176	$	10	$	1,696,166


December 31, 2019
Type of Investment	Cost or Amortized Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Fair Value
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	$	69,300	$	203	$	12	$	69,491
U.S. government agency	97,962		2,344		104		100,202
States, municipalities and political subdivisions
General obligations:
Midwest	85,607		2,987		—		88,594
Northeast	30,120		1,150		—		31,270
South	111,688		3,515		—		115,203
West	105,569		4,748		—		110,317
Special revenue:
Midwest	133,717		6,175		—		139,892
Northeast	58,665		2,878		—		61,543
South	224,214		10,452		—		234,666
West	138,557		6,287		—		144,844
Foreign bonds	4,936		181		—		5,117
Public utilities	60,950		2,701		—		63,651
Corporate bonds
Energy	28,695		1,429		—		30,124
Industrials	52,249		1,766		—		54,015
Consumer goods and services	47,131		2,335		—		49,466
Health care	8,998		482		—		9,480
Technology, media and telecommunications	25,931		1,739		—		27,670
Financial services	96,613		3,870		230		100,253
Mortgage-backed securities	6,250		127		21		6,356
Collateralized mortgage obligations
Government national mortgage association	78,400		2,053		97		80,356
Federal home loan mortgage corporation	123,572		1,150		220		124,502
Federal national mortgage association	70,322		1,631		108		71,845
Asset-backed securities	314		436		—		750

Total Available-for-Sale Fixed Maturities	$	1,659,760	$	60,639	$	792	$	1,719,607

Schedule of Maturities

The amortized cost and fair value of available-for-sale and trading fixed maturity securities at June 30, 2020, by contractual maturity, are shown in the following tables. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity.


Maturities
	Available-For-Sale						Trading
June 30, 2020	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	54,841	$	55,305	$	1,122	$	3,085
Due after one year through five years	324,957		343,117		6,703		6,565
Due after five years through 10 years	434,946		468,553		—		—
Due after 10 years	518,933		554,775		1,091		1,573
Asset-backed securities	314		927		—		—
Mortgage-backed securities	15,737		16,070		—		—
Collateralized mortgage obligations	246,089		257,429		—		—
Allowance for credit losses	—		(10)		—		—
	$	1,595,817	$	1,696,166	$	8,916	$	11,223

Summary of Net Realized Investment Gains and Losses

A summary of the components of net realized investment gains (losses) is as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Net realized investment gains (losses):
Fixed maturities:
Available-for-sale	$	30	$	(8)	$	—	$	142
Allowance for credit losses	49		—		(10)		—
Trading securities
Change in fair value	1,601		501		(1,008)		2,247
Sales	(305)		92		(154)		92
Equity securities
Change in fair value	29,809		12,499		(60,838)		37,133
Sales	(15,406)		507		(15,586)		705
Mortgage loans allowance for credit losses	1		—		(4)		(15)





Real estate	—		—		(28)		—
Total net realized investment gains (losses)	$	15,779	$	13,591	$	(77,628)	$	40,304

Schedule of Proceeds and Gross Realized Gains and Losses

The proceeds and gross realized gains on the sale of available-for-sale fixed maturity securities are as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Proceeds from sales	$	4,996	$	—	$	16,907	$	36,490
Gross realized gains	26		—		198		30
Gross realized losses	113		—		495		13

Schedule of Unrealized Investment Appreciation

A summary of the changes in net unrealized investment appreciation during the reporting period is as follows:


	Six Months Ended June 30,
	2020		2019
Change in net unrealized investment appreciation
Available-for-sale fixed maturities	$	40,511	$	61,824
Income tax effect	(8,507)		(12,983)
Total change in net unrealized investment appreciation, net of tax	$	32,004	$	48,841

Schedule of Rollforward of Allowance for Credit Losses for Available-for-Sale Fixed Maturity Securities

The following table contains a rollforward of the allowance for credit losses for available-for-sale fixed maturity securities at June 30, 2020:


Rollforward of allowance for credit losses for available-for-sale fixed maturity securities:
	As of
	June 30, 2020
Beginning balance, January 1, 2020	$	—
Additions to the allowance for credit losses for which credit losses were not previously recorded	10
Reductions for securities sold during the period (realized)	—
Writeoffs charged against the allowance	—
Recoveries of amounts previously written off	—
Ending balance, June 30, 2020	$	10

Schedule of Investments in Unrealized Loss Position

The following tables summarize our fixed maturity securities that were in an unrealized loss position reported on a consolidated basis at June 30, 2020 and December 31, 2019. The securities are presented by the length of time they have been continuously in an unrealized loss position. Non-credit related unrealized losses are recognized as a component of other comprehensive income and represent other market movements that are not credit related, for example interest rate changes. We have no intent to sell, and it is more likely than not that we will not be required to sell, these securities until the fair value recovers to at least equal our cost basis or the securities mature.



June 30, 2020	Less than 12 months								12 months or longer						Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds













Foreign bonds	1	$	2,900	$	106	—	$	—	$	—	$	2,900	$	106

Corporate bonds
Energy	1	451		11		—	—		—		451		11

Consumer goods and services	1	3,090		52		—	—		—		3,090		52


Financial services	1	2,985		60		—	—		—		2,985		60
Mortgage-backed securities	—	—		—		7	188		2		188		2
Collateralized mortgage obligations
Federal home loan mortgage corporation	12	24,455		160		1	89		1		24,544		160
Federal national mortgage association	4	17,986		83		—	—		—		17,986		83
Government national mortgage association	—	—		—		1	145		1		145		1


Total Available-for-Sale Fixed Maturities	20	$	51,867	$	471	9	$	422	$	4	$	52,289	$	475



December 31, 2019	Less than 12 months								12 months or longer						Total
Type of Investment	Number of Issues	Fair Value		Gross Unrealized Depreciation		Number of Issues	Fair Value		Gross Unrealized Depreciation		Fair Value		Gross Unrealized Depreciation
AVAILABLE-FOR-SALE
Fixed maturities:
Bonds
U.S. Treasury	—	$	—	$	—	2	$	4,733	$	12	$	4,733	$	12
U.S. government agency	3	13,846		104		—	—		—		13,846		104













Corporate bonds





Financial services	3	10,906		142		1	4,913		88		15,819		230
Mortgage-backed securities	—	—		—		13	1,585		21		1,585		21
Collateralized mortgage obligations
Federal home loan mortgage corporation	12	50,829		183		3	4,844		37		55,673		220
Federal national mortgage association	4	23,515		90		3	1,102		18		24,617		108
Government national mortgage association	2	8,444		38		5	3,053		59		11,497		97


Total Available-for-Sale Fixed Maturities	24	$	107,540	$	557	27	$	20,230	$	235	$	127,770	$	792